- Dogecoin is showing early signs of a trend reversal after bouncing from a key demand zone at $0.115, gaining bullish momentum.
- With rising Funding Rates and growing market interest, DOGE could be poised for further price gains if bulls maintain control.
Dogecoin (DOGE) is sparking renewed interest among investors as it reclaims bullish momentum. After a period of uncertainty and bearish price trends, DOGE is bouncing back from a key demand zone at $0.115. But the big question on everyone’s mind: will this be the start of a sustained trend reversal?
Dogecoin Breakout from Key Demand Zone
In recent weeks, Dogecoin retested a critical price level that previously acted as a strong support zone, fueling a breakout from a flag consolidation pattern. This demand zone, which saw DOGE surge by approximately 34% before the latest bearish downturn, has now become a focal point once again. Since the retest on the weekly chart, the price has been steadily gaining bullish momentum.
This recovery suggests that market sentiment is shifting. Investors are showing renewed confidence in DOGE, and some are even piling in with momentum-driven interest. This sharp bounce is often seen as a confirmation of bullish demand in the market.
The Role of Rising Funding Rates
The steady rise in Dogecoin’s Weighted Funding Rate over the past few days is backing the bullish trend.The Funding Rate reflects the amount market participants are willing to pay to keep their long positions open, signaling strong bullish sentiment.
As DOGE’s Funding Rate climbs, it suggests that more investors are willing to bet on further price gains. This shift in sentiment often indicates that bulls are taking control, while short-sellers retreat from the market, expecting continued upward movement.
Can the Bullish Trend Continue?
While promising, DOGE investors should stay cautious if trading volume drops or the Funding Rate coolsit could signal that bullish interest is fading. However, if Dogecoin continues to hold above its demand zone and steadily climbs higher, the potential for a sustained trend reversal increases.
At this critical juncture, the next few days will be pivotal in determining whether this is a true market shift or just another temporary rally. Keep an eye on the price action and the Funding Rate—these indicators will provide clues about DOGE’s future direction.
